Crypto News– The U.S. Department of Justice (DOJ) has unveiled an extensive list of witnesses, which includes former FTX customers, for the upcoming trial involving Sam Bankman-Fried (SBF). This development follows closely on the heels of the U.S. Securities and Exchange Commission (SEC) bringing charges against Prager Metis, the auditing firm associated with the now-bankrupt company.
US DOJ Calls on Ex-FTX Users and SBF Affiliates for Trial Testimony
As of September 30, the DOJ has identified its witnesses, encompassing past FTX customers and key stakeholders from the defunct firm. The DOJ’s plan involves summoning both retail and institutional investors who hold significant assets within the FTX platform.
These witnesses will shed light on their expectations and understanding of FTX’s asset management system. Notably, the list of DOJ witnesses will also feature former FTX and Alameda executives who have previously acknowledged their culpability. Among this group are FTX’s Chief Technology Officer (CTO) Gary Wang, former FTX Head of Engineering Nishad Singh, and former CEO of Alameda Research, Caroline Ellison.
In a separate development, the U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against Prager Metis, the auditor for FTX.
According to the financial regulator, Prager Metis is alleged to have violated rules governing auditor independence and facilitated their clients’ breaches of federal securities laws. The accounting firm is accused of inappropriately including indemnification clauses in engagement letters for over 200 audits, reviews, and examinations.
Leave a comment